The economic backdrop in 2019 has been characterized by weakness in manufacturing being offset by the resilience of services and health of the consumer.
Markets have bounced back nicely in 2019 after a volatile December due to concerns of rising rates, peak economic and earnings growth and geopolitical tensions.
Due to hedge portfolios and growth assets, funded status rose 1% this month from 87.5% to 88.5%.
Alternatives for uncorelated income
The current earnings season has been mixed; lower energy prices and a stronger dollar are headwinds, but health care sector M&A is providing an offset.
How public pension funds can enhanve returns while limiting investment costs
PG&E (ticker: PCG) filed for bankruptcy - surprisingly the issuer was within the A or better rated pension liability discount rate universe within the prior 12 months.
Political uncertainty has led to low expectations that policy initiatives would see much progress before year-end.
Equities continue to look attractive relative to fixed income, and could very well move higher in the short-term given firmer economic data and a Fed on hold.
Due to growth assets and interest rates, funded status rose 1.5% this month from 85.4% to 86.9%.